This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 28 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is not a qualitative factor affecting a firm's investment appraisal decisions? A) Aims and objectives. B) Risk. C) The selected discount factor. D) Impact on the environment. Show Answer Correct Answer: C) The selected discount factor. 2. What is the difference between capital and revenue? A) Capital is money used for investments, revenue is used for expenses. B) Capital is money spent, revenue is money earned. C) Capital is money used for expenses, revenue is used for investments. D) Capital is money earned, revenue is money spent. Show Answer Correct Answer: B) Capital is money spent, revenue is money earned. 3. External sources of finance do not include: A) Retained earnings. B) Debentures. C) Leasing. D) Overdraft. Show Answer Correct Answer: A) Retained earnings. 4. A weekly newspaper ad and a monthly lease fee for a credit card machine are both ..... A) Fixed costs. B) Variable expenses. C) Variable costs. D) Incidental needs. Show Answer Correct Answer: A) Fixed costs. 5. A finance manager has to make estimation with regards to capital requirements of the company A) Determination of Capital Composition. B) Estimation of Capital Requirements. Show Answer Correct Answer: B) Estimation of Capital Requirements. 6. Is a market where buyers and sellers trade commodities, foreign exchange and financial securities. A) Market. B) Asset. C) Finance. D) Financial market. Show Answer Correct Answer: D) Financial market. 7. A method of inventory recording which produce high inventory in balance sheet is classified as A) First in first out. B) First out receivable. C) Last in first out. D) Last out receivable. Show Answer Correct Answer: A) First in first out. 8. The principal savers in the financial markets are A) Businesses. B) Businesses. C) Governments. D) Individuals. Show Answer Correct Answer: D) Individuals. 9. Failure to read and understand the information in the Notes to the Financial statements may be obscure managers in evaluating the degree of risk. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 10. The ..... reports the revenue and expenses of a business for a specific time period and shows a net income or a net loss. A) Owner's equity. B) Accounts payable. C) Financial statement. D) Income statement. Show Answer Correct Answer: D) Income statement. 11. What are the five C's of credit? A) Capacity, Collection, Collateral, Common Sense, Capital. B) Capacity, Conditions, Collateral, Character, Capital. C) Capacity, Clearance, Collateral, Character, Capital. D) Capacity, Coloring, Clearing, Creativeness, Coneheads. Show Answer Correct Answer: B) Capacity, Conditions, Collateral, Character, Capital. 12. Name of the form you use to file your federal taxes. A) D-400. B) 1040EZ. C) W-4. D) W-2. Show Answer Correct Answer: B) 1040EZ. 13. The sooner cash is received, the more ..... it is. A) Wealth. B) Financial. C) Valuable. D) Money. Show Answer Correct Answer: C) Valuable. 14. Diner Ltd. is a restaurant having 15 restaurants in Europe. They decide to take this number to 25 by opening 10 more restaurants in the major cities of Europe. What do you think will be the fixed capital here? A) High. B) Low. C) Can be high or low. D) None of above. Show Answer Correct Answer: A) High. 15. To determine the operating cycle for a department store, which one of these pairs of items is needed? A) Cash turnover and net sales. B) Days' sales in accounts receivable and average merchandise inventory. C) Accounts receivable turnover and inventory turnover. D) Asset turnover and return on sales. Show Answer Correct Answer: C) Accounts receivable turnover and inventory turnover. 16. Sum of money that is owned or due A) RBD. B) Debtors. C) Creditors. D) Debt. Show Answer Correct Answer: A) RBD. 17. The financial intermediary such as bank, insurance company, or a mutualfund obtains funds from savers in exchange for its securities. A) Transfer Through a Financial Intermediary. B) Direct transfer. C) Transfer through Investment Banks. D) None of above. Show Answer Correct Answer: A) Transfer Through a Financial Intermediary. 18. Is hence the handling of all financial matters, and this includes analyzing financial statements, evaluating investment opportunities which happens before one actually starts investing, and raising capital or funds from different sources. A) Financial Management. B) Finance. C) Evaluating Investments. D) Financial Institution. Show Answer Correct Answer: A) Financial Management. 19. Participants who receive more money than they spend. A) Surplus Units. B) Deficit Unit. C) Finance Manager. D) Employees. Show Answer Correct Answer: A) Surplus Units. 20. This refers to the relationship between equity capital, preference share capital and debt capital. A) Capital structure. B) Capital. C) Sources of financing. D) None of the above. Show Answer Correct Answer: A) Capital structure. 21. Payment of monthly interest expense A) Operating Activities. B) Financing Activities. C) Investing Activities. D) None of above. Show Answer Correct Answer: A) Operating Activities. 22. True or False, The following statement is a SMART goal: "I want to make all As." A) False. B) True. Show Answer Correct Answer: A) False. 23. Cash discount term 3 / 15, net 40 means ..... A) 15% Discount if payment in 3 days, otherwise full payment in 40 days. B) 40% Discount if payment in 3 days, otherwise full payment in 15 days. C) 3% Discount if payment in 15 days, otherwise full payment in 40 days. D) None. Show Answer Correct Answer: C) 3% Discount if payment in 15 days, otherwise full payment in 40 days. 24. The following shows Steven's expenses in a month. Food RM760Utility bills RM130Petrol and tolls RM175Insurance premium RM70Car Installment RM650House rent RM500Hobby needs RM50Calculate the total fixed expenses and total variable expenses of Steven. A) Fixed expenses RM1270Variable expenses RM1065. B) Fixed expenses RM1200Variable expenses RM1135. C) Fixed expenses RM1220Variable expenses RM1115. D) Fixed expenses RM 1150 Variable expenses RM 1065. Show Answer Correct Answer: C) Fixed expenses RM1220Variable expenses RM1115. 25. Capital structure is a part of the liability side of a balance sheet. A) False. B) True. Show Answer Correct Answer: B) True. 26. External sources of funds are A) Funds from long term loans. B) Sale of fixed assets. C) Both (A) and (B). D) None of the above. Show Answer Correct Answer: A) Funds from long term loans. 27. What is statement that provide measurement of performance at some period time? Usually, provide amount of firm revenue and firm expense. A) Balance Sheet. B) Risk Management Report. C) Cash Flow. D) Income Statement. Show Answer Correct Answer: D) Income Statement. 28. Return on investment is computed as? A) Total Investment X EBIT. B) EBIT / Total Investment. C) EBIT X EBT. D) EBT / Total Investment. Show Answer Correct Answer: B) EBIT / Total Investment. 29. Joint venture is A) It is licencing. B) Not jointly owned by. C) Acquired by firms. D) Jointly owned by two or more. Show Answer Correct Answer: D) Jointly owned by two or more. 30. Financial Managers are often task to trade the equity securities of the firm in the financial market. What particular activity is this? A) Making Crucial Investment & Financing Decisions. B) Forecasting & Planning. C) Trading in Financial Markets. D) Coordinating & Controlling. Show Answer Correct Answer: C) Trading in Financial Markets. ← PreviousNext →Related QuizzesManagement QuizzesFinance QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books